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Commerce · Q371

Accounting

Graduate and Post Graduate · Commerce · question 371

Q371

A company cannot issue redeemable preference shares for a period exceeding

A.
10 years
B.
20 years
Answer
C.
30 years
D.
15 years

Answer: Option B

Solution

Answer: Option B
Solution:
A company cannot issue redeemable preference shares for a period exceeding 20 years. A company may issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue under section 55 of the Companies Act 2013.